indra industries ltd Management discussions

<dhhead>MANAGEMENT DISCUSSION AND ANALYSIS REPORT </dhhead>

INDUSTRY STRUCTURE AND DEVELOPMENT

Agriculture is the third largest sector of Indian Economy which contributes around 20.50% of total GDP of the Country. Fertilizer Industry, with the emerging scenario, plays vital role in the growth of Agriculture Sector.

Sustainable development is the need of the time and it can only be achieved through balanced growth of both agriculture and Industrial sector. There is a popular saying “Countries are known for their greenery, and India is one of those country. Growth of agriculture and growth of fertilizer Industry supplement each other. India being the second-largest consumer of fertilizers in the world with an annual consumption of more than 55 million metric tons. Fertilizer Industry, with the emerging scenario, plays a vital role in the growth of agriculture sector. The balanced use of chemical fertilizers is important not only for increasing agricultural productivity but also for sustaining soil fertility.

OPPORTUNITIES RELATING TO THE BUSINESS

FERTILIZERS POLYMER

Due to shortage of working capital and financial crises face by the company since long it may not be feasible to continue to maintain plant. Further during the year company has disposed off the inventory lying with the company.

During the current financial year 2023-24, Company has entered into agreement with Adarsh Agro Fertilizer, Naiabadi, Mandsour (M.P.) for disposal ofundertaking and entire assets of the Company situated at Village Sandala Tehsil Badnawar District Dhar (M.P.) Company has already obtained members approval by way of Special Resolution passing through postal ballot on 21^st March, 2022 and further sale proceed shall be utilized to pay the outstanding amount of financial institution and creditors. After payment to outstanding loan of financial institution board may think about to start new business line.

FINANCIAL PERFORMANCE

Overview

During the financial year 2022-23, revenue from operation of the Company is Rs. 241.69 Lakhs as against Rs. 489.62 Lakhs in the previous year, recording a decrease of 50.64%. Further during the financial year, Company incurred net loss after tax of Rs. 98.28 lakhs as against previous year in which Company has incurred net loss amounting to Rs. 26.87 Lakhs.

The revenue and profitability of the Company was impacted to large extend and due to financial crunch the Company is unable to maintain even its minimum bearing commitments.

SEGMENT WISE PERFORMANCE

Your Company is multi segment Company as it deals in Fertilizers and Polymers. During the year under review the performances in terms of revenue of the segments were as follows:-

Fertilizers

During the year Revenue from Fertilizer segment was Rs. 122.03Lacs as compared to previous year Rs. 41.06Lacs and earned Net Profit of Rs. 5.02 Lacs as compared to previous year Net Loss of Rs. 31.13 Lacs.

Polymer

During the year Revenue from Polymer segment was Rs. 119.66 Lacs as compared to previous year Rs. 448.65 Lacs and incurred Net Loss of Rs. 103.30 Lacs as compared to previous year Net Profit of Rs. 4.26 Lacs.

INDUSTRY OUTLOOK

India fertilizer market is expected to grow at a CAGR of 4.7% between 2023 and 2028, reaching a projected value of USD 1160.18 billion by 2028. The market growth is being driven by increasing demand for food production and improvements in agriculture processes.

RISK MANAGEMENT

Risk Management plays a key role in business strategy and planning discussions. It has in place a mechanism to identify, assess, monitor and mitigate various risks associated with the business.

INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY

The companys internal control/supervisory system is established to ensure that the board and management are able to achieve their business objectives in a prudent manner, safeguarding the interest of companys shareholders and other stakeholders whilst minimizing the key risk such as fraud, misleading financial statements, breach of legal and contractual obligations, unauthorized business activities.

DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

Financial and Operational performance forms part of the Annual Report and is presented elsewhere in the report.

HUMAN RESOURCES

The focus is on the capability development, performance management and employee engagement. This is expected to improve the cost competitiveness through greater levels of employee participation, commitment and involvement. As at 31^st March, 2023, Company had only five employees.

DETAILS OF SIGNIFICANT CHANGES IN THE KEY RATIOS AND RETURN ON NET WORTH

As per the amendment made under Schedule V to the Listing Regulations read with Regulation 34(3) of the Listing Regulations, details key financial ratios and any changes in return on net worth of the Company are given below:

Particulars	2022-23	2021-22	Change (in %)
5.4pt> Debtors’ turnover	1.40	2.13	34
Inventory turnover	1.19	2.28	48
Interest coverage Ratio	0	0	0
Current Ratio	0.29	0.30	3
Debt-Equity Ratio	-2.09	-3.19	34
Operating profit margin (%)	0%	0%	0
Net profit margin (%) or sector-specific equivalent ratio as applicable	-0.16%	-0.09%	83

Change of more than 25% in Key Financial Ratios is due to operating losses incurred by the Company.

DETAILS OF CHANGE IN RETURN ON NET WORTH AS COMPARED TO THE IMMEDIATELY PREVIOUS FINANCIAL YEAR

There was change of -18.30% in Return of Net Worth from the previous financial year.

CAUTIONARY STATEMENT

Statements in the Management Discussions and Analysis Report and Board’s Report describing the Company’s objectives, expectations, or predictions may be forward looking within the meaning of applicable laws and regulations. Actual results may differ materially from those expressed or implied. Important factors that could influence the Company’s operations include competition, government policies and regulations.